Canada’s economy better than expected in the last quarter of 2024, new numbers show

The Canadian economy has exceeded expectations in the last quarter of the year, Canada statistics said on Friday, thanks to an increase in household expenses.

The real gross domestic product has increased by 2.6 percent annualized in the fourth quarter, the agency said.

This is far above the calls of the consensus of the economists questioned by Reuters before the statement, as well as the Canada Bank, both expected that the real GDP would increase 1.8 % annually.

The launch on Friday also showed that the Canadian economy has increased by 2.2 percent annualized in the third quarter of 2024, revised from the initial estimates for an increase percent.

The household expenses have increased by 1.4 percent in the fourth quarter, the fastest pace in more than two years, said Canada statistics. The growth was driven by purchases of new trucks, utility vehicles and sports utility vehicles.

The retail activity was particularly strong in the last month of the year. Canada statistics said that the 2.6 percent of December of the retail trade was the biggest jump in June 2021, when shopping restrictions in person began to be detached.

Despite the disturbances of the Canada’s job strike, the transport sector has decreased more in December, due to an increase in courier activity and the end of the railway attacks and port in November, which led to a return.

Residential construction has also increased at the fastest rhythm in more than three years in the fourth quarter, the agency said, while extracts on business stocks compensate for growth.

Canada statistics said the real GDP per capita has increased by 0.2 percent in the last quarter. On one person, the Canadian economy has contracted in five of the last seven quarters, although the agency has revised the results in the second quarter of 2024 until a positive territory.

Canada statistics said that the real GDP has increased by 0.2 percent in December, and its early estimate requires the growth to easily accelerate to 0.3 % in January.

The latest figures of the GDP paint an image of a Canadian economy that ticks a higher title in 2025, after a series of interest rate reductions from the Canada Bank, which aims to stimulate growth.

But this trajectory is exposed to risk under the threat of tariffs by US President Donald Trump, whose deadlines to impose costly taxes on nearby Canadian goods.